Articles Tagged withcannabis delivery regulations

The road to marijuana legalization is paved with regulations, for better or worse. And it’s a bumpy road that marijuana delivery service businesses have had to learn to navigate.

Delivery businesses specializing in cannabis have a unique set of rules to follow. They must abide by the laws in the local jurisdiction in which their home base is located. But they also have to take into consideration laws that dictate transport. This has led to a particular set of challenges in Sacramento County, according to the Sacramento Bee.

While adult-use marijuana was legalized in the state Jan. 1, under Proposition 64, each local government was allowed to set its own terms. Under the law, deliveries can only be made between cities that allow it. This can be a real disadvantage to patients, some who have difficulty leaving their homes, and business owners. And product must be kept in the city where the business has a license.

In Sacramento County, as of now only the city of Sacramento has plans to receive deliveries. The city has not issued any permits yet, but eight delivery companies have registered while the permit program is being established. Meanwhile Sacramento’s pot czar says many businesses are operating without licenses, and he is on a mission to rein them in. A recent tally on a marijuana delivery website showed about 200 delivery businesses in the county. Continue reading

As cannabis business zones continue to be established and expand in the state of California, entrepreneurs have many opportunities to grow their marijuana businesses. But this also means they must keep up with new and ever evolving regulations and standards.

Many cities especially are passing regulations in order to limit the influence of the state on how the city chooses to oversee marijuana delivery services, growers, collectives, and edible and concentrate producers. Delivery services in particular must navigate a continually growing list of rules, ranging from methods by which the businesses can make deliveries to where they are allowed to set up.

In Hesperia, California, for example, the city council approved an amendment that expands the area approved for establishing delivery services and affirms cannabis activity regulations, according to an article from The Daily Press.Continue reading

New changes to California cannabis regulations will dramatically impact marijuana delivery services. According to Forbes, the California Bureau of Cannabis Control has released a detailed set of regulations for the operation of cannabis businesses in preparation for the issuance of business licenses for the sale of recreational marijuana in January 2018. Amongst thousands of other regulations, these provisions prohibit many methods of marijuana delivery, including: aerial drones, autonomous land-based robots, aircraft, watercraft, rail, and unmanned vehicles. The regulations specify that delivery may only be made in person by enclosed motor vehicle. This ban raises larger issues of marijuana delivery restrictions within California. As the innovative tech culture of Silicon Valley improves and expands drones and other autonomous delivery services, it is likely that the rule will be adapted. As the rules change and adapt to new technologies, how can cannabis business owners stay in compliance and maintain profitable operations?

How Delivery Services Are Adapting Their Business Models

Marijuana delivery services in California have taken many creative approaches to the question of how to develop a business strategy around delivery restrictions and regulations. TechCrunch reports that Eaze – a marijuana delivery service – has recently raised $27 million in Series B financing after spending $24.5 million in venture capital. This large influx of cash is supporting an aggressive growth strategy. When questioned about the wisdom of spending $1 million per month in cash, CEO Jim Patterson responded that the company is investing in growth before the imminent legalization of sales of recreational marijuana. Patterson also dismissed concerns over large delivery logistics companies, such as Amazon, getting into the marijuana delivery market, citing the complications of marijuana regulations at the federal level.Continue reading